Rightways

Saturday, February 8, 2014

Rosy outlook for Penang 2014: Strong growth, rise in FDI seen

A roundtable organised by KPMG Penang this week at KPMG new office, the Hunza Tower in Kelawei Road, George Town concludes that Penang
will continue to enjoy high economic growth in 2014 and attract foreign
direct investors.

Its tourism and property sectors will stay buoyant this year and
the recovery in its electrical and electronic sector will continue into
2014.

Penang’s GDP growth in 2013 is estimated to be slightly less than 5%, according to official data.

“Penang remains a highly attractive location for local and foreign
investors alike. It is also noteworthy that Penang ranks as one of the
top emerging business processing locations worldwide.

“We certainly see healthy prospects for Penang across several
industries,” said Johan Idris, managing partner of KPMG in Malaysia.

Penang’s property sector was also expected to maintain its 2013
growth momentum through 2014, he added in a KPMG statement this week.

“The uptrend in businesses and Penang as a desirable location has
led to the consistently high demand for both residential and commercial
properties on the island.

KPMG Penang, which highlighted tourism as a key sector for the
state, expected tourism to remain a mainstay for the state in terms of
revenue.

“As a designated UNESCO World Heritage site since 2008, tourist
arrivals have steadily increased 14% as at October 2013 recording 4.4
million tourists.

“Penang’s hospitality industry is expected to chalk good returns,
particularly as occupancy rates are slated for an upswing. Tourist
arrivals are not limited to the ASEAN region but also from across the
globe.”

“We believe that the positive turnaround will continue into 2014
due to the government’s allocation of additional land bank in Batu
Kawan. Slated for development, Batu Kawan is an extension of the Bayan
Lepas Free Trade Zone which is currently facing limited land space due
to rapid expansion.”

KPMG Penang also said foreign direct investments (FDIs) were
expected to escalate in 2014 as a result of the completion of major
restructuring projects in Penang.

It foresaw additional advisory work in relation to mergers and
acquisitions (M&A), transaction and restructuring projects. –The Edge

Rosy outlook for Penang

PENANG can expect strong economic growth this year
following the upgrade in ranking by Moody’s Investor Service outlook in
November.

KPMG Penang Partner-in-Charge Ooi Kok Sheng said the rating upgrade was an encouraging sign for the country.

“With active steps taken by the Government to implement fiscal reforms,
Malaysia remains resilient amidst global economic uncertainty,” said
Ooi.

He was speaking during KPMG Penang’s inaugural Economic
Outlook Roundtable session at their new office at the Hunza Tower in
Kelawei Road, George Town.

“Penang remains a highly attractive location for local and foreign investors alike.

“It is also noteworthy that Penang ranks as one of the top emering business processing locations worldwide.”

He said KPMG Penang saw tourism as a key sector for the state and
expected it to remain as the mainstay for the state government in terms
of revenue.

“Penang’s hospitality industry is expected to chalk good returns, particularly as occupancy rates are slated for an upswing.

“Tourist arrivals are not limited to the Asean region. The state has many visitors from all over the globe.”

Ooi also anticipated a sustained demand for audit, tax and advisory work in 2014.

“With Penang as a manufacturing and export hub for the northern region
and dubbed the semiconductor Silicon Valley of Malaysia, many
public-listed companies have based their operations in the state,” he
said.

“However, we are not without our problems as we are in urgent need of a viable public transportation system,” said Harris.

Penang Rehda chairman Datuk Jerry Chan said the state should benchmark according to international standards, rather than local.

“We have been noted as one of the best food destinations in the world
and one of the most liveable cities in the world,” he said.

“It is time for us to set a global benchmark in other sectors.”

- The Star/Asia News Network

'Penang set for healthy growth'

THE opening of the Second Penang Bridge, six new hotels and an influx of
medical tourists into the state are expected to keep Penang's economy
healthy this year, say captains of various industries.

Malaysian Association of Hotels (MAH) Penang chapter chairman Dr Mary
Ann Harris said the soon-to-be opened longest bridge in Southeast Asia
is expected to be a tourism draw.

"There is definitely going
to be more tourists drawn to the new bridge and we expect many of them
to participate in the Penang Bridge International Marathon 2014, which
is expected to be held at the second bridge," she said.

The
RM4.5 billion Second Penang Bridge, which connects Batu Maung on the
island to Batu Kawan in the mainland, serves as a second land crossing
after the first Penang Bridge was opened in 1985.

Harris said the state's tourism sector is expected to see the entry of
six new hotels of two- to five-star, and the availability of some
1,000 room keys.

MAH Penang's membership is made up of 50 hotels with a total of 10,000 room keys.

Among
the new properties expected to open their doors include the Royale
Bintang and Rice Miller Hotel, which are both located at Weld Quay.

Other projects are said to include a hotel in Seberang Jaya and serviced apartments in Teluk Kumbar on the island.

Meanwhile,
Penang Health Association chairman Datuk Dr Chan Kok Ewe told the
roundtable session that seven private hospitals in Penang (with a total
of over 1,000 beds), which are members of the association, had recorded
RM370 million in revenue from medical tourists last year.

"Prospects for this sector are encouraging. There have also been
suggestions to make Yangon in Myanmar a sister city of George Town in
Penang, due to the shared heritage of the two cities.

"There
is also anticipated demand from medical tourists in China but whether
our hospitals, which have been making significant investments with
expansion programmes to cater to medical tourists, can cope with the
capacity is the question," he added, saying that private hospitals in
the state are also experiencing manpower shortage.

Meanwhile,
Johan in his welcoming address, said KPMG Penang expects the state's
property sector to maintain its momentum throughout this year.

"The industry has certainly fared positively with healthy uptake in
retail, residential and industrial lots and is indeed diverse, given the
many types of businesses operating in there."